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Horizon Global – Sustainability Report
REPORT CONTENTS
A MESSAGE FROM HORIZON GLOBAL’S CEO ................................................................ 5
HORIZON GLOBAL AT A GLANCE ...................................................................................... 6
OUR MISSION, VISION, AND VALUES ................................................................................. 8
OUR ESG STRATEGY................................................................................................................ 9
ESG ROADMAP......................................................................................................................... 10
ENVIRONMENT ........................................................................................................................ 11
CORPORATE ENVIRONMENTAL POLICY ....................................................................... 12
ENVIRONMENTAL MANAGEMENT SYSTEM (EMS)– ISO 14001 ................................ 13
GREEN RECOVERY PLAN..................................................................................................... 14
CO2 Emissions ........................................................................................................................ 15
Energy Reduction Activities at Our Facilities ..................................................................... 16
WATER USE............................................................................................................................... 18
COMPANY RECYCLING ........................................................................................................ 19
SOCIAL ....................................................................................................................................... 20
OUR PEOPLE............................................................................................................................. 21
Recognizing Talent and Encouraging People ...................................................................... 21
Recognizing Long-Timers ..................................................................................................... 22
Employee Training, Education, and Development ............................................................. 23
Talent Acquisition .................................................................................................................. 23
Performance and Career Development Reviews ................................................................ 24
Benefits at a Glance ............................................................................................................... 24
Remote Work ......................................................................................................................... 25
DIVERSITY, EQUITY, AND INCLUSION ............................................................................ 25
Encouraging Women at Horizon .......................................................................................... 26
Female Board Representation .............................................................................................. 27
Women @ Horizon ................................................................................................................ 27
COMMITMENT TO ETHICS .................................................................................................. 28
Ethics Hotline ......................................................................................................................... 28
Freedom of Association ......................................................................................................... 28
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Horizon Global – Sustainability Report
Horizon Global Corporation has a tremendous responsibility to all our stakeholders – from our
employees to our customers and suppliers to those living in the communities in which we do
business. Our daily actions, and the important decisions we make, need to be done in an
environmentally and socially conscious way. At the end of the day, it comes down to fostering and
sustaining a culture of doing the right thing.
As a leader in our industry, we are committed to meeting the performance needs of end users,
while striving to maintain the highest standards and product quality. We stand by our Company’s
vision of “enriching lives through great products” and aim to work with integrity while producing
best-in-class products. This report details activities taken to continuously improve our decisions
surrounding environmental, social, and governance issues.
Horizon Global’s approach to sustainability is an integral part of our corporate culture. Our
Mission, Vision, and Values reflect our ambition to be a socially-responsibility organization
committed to respect, integrity, and accountability.
While many of the activities detailed in the Sustainability Report are macro in scope, I’d like to
share with you a few of the specific initiatives we supported during 2020. As the global pandemic
impacted all aspects of life, it was more important than ever to help our employees and our
community. We were able to support the education of our employees’ children through various
tutoring programs, as our children transitioned to virtual and hybrid learning environments.
Horizon Global also partnered with Volunteers of America Michigan for its Adopt a Family 2020
Campaign to provide an enhanced holiday experience for those in need. We are proud of these
efforts, and we will continue to find ways to assist both our employees and the communities in
which we do business.
It is an honor and privilege to be leading this Company, and I want to thank our employees,
customers, suppliers, shareholders, and other key stakeholders as we continue moving forward
with our collective goals. We are proud to present you with our 2021 Sustainability Report.
Sincerely,
Terrence G. Gohl
Chief Executive Officer
• Aftermarket: This sales channel represents sales to automotive installers and warehouse
distributors. In addition to selling our towing and trailering products to the aftermarket sales
channel, we also sell our cargo management and “other” products to this sales channel. The
cargo management product category includes a wide variety of products used to facilitate the
transportation of various forms of cargo. Examples of these products are bike racks, roof cross
bar systems, cargo carriers, luggage boxes, car interior protective products, loading ramps, and
interior travel organizers. The “other” product category includes a diverse range of items in
our portfolio that do not fit into towing, trailering, or cargo management categories. Examples
of these products include tubular push bars, side steps, sports bars, skid plates, and oil pans.
• Retail: This sales channel represents sales to direct-to-consumer retailers, such as traditional
brick and mortar merchants. While we offer most of our products to the retail sales channel,
we primarily focus on towing and cargo management products in this sales channel.
• E-commerce: This sales channel represents sales to direct-to-consumer retailers who utilize the
Internet to purchase the Company’s products. Like the retail sales channel, we offer a majority
of our products to the e-commerce sales channel, with a focus on towing and cargo
management products.
We have positioned our product portfolio to create a variety of options based on price-point,
ranging from entry-level to premium-level products across most of our markets. We believe the
brands we offer have significant customer recognition, with the three most significant being
Reese®, Draw-Tite®, and Westfalia®. We believe all three have substantial market share and
have been leading brands in the towing market for over 50 years. These brands provide the
foundation of our market position based on worldwide commercial and consumer acceptance. We
also maintain a portfolio of recognized brands that include Bulldog®, Fulton®, Reese Secure™,
Reese Explorer™, Reese Power Sports, Reese Towpower™, ROLA®, Tekonsha®, WesBarg®,
and Witter Towbar Systems.
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Horizon Global – Sustainability Report
Socially Responsible
We speak up for what is right and report wrongdoing when we see it. We accept
responsibility for our actions as individuals, co-workers, and as a company. We
do not retaliate against those who try to do the right thing by asking questions
and raising concerns.
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As an organization, as of the date of this Report, ESG efforts apply to our internal and external
stakeholders as follows:
Strategies and Applicability
Internal External
Environmental X Suppliers
Energy X ---
Water usage X ---
Climate – Emissions X ---
Product Quality X Customers, Suppliers
Sustainability in Supply Chain X Suppliers
Diversity X ---
Local Community Engagement X ---
Working Environment X Suppliers
Employee Development X ---
Health & Safety X Suppliers
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ENVIRONMENT
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Horizon Global plays an important role in bringing customers closer to the environment. As a
result – and because of our commitment to fostering and sustaining a culture of doing the right
thing – we view the preservation of the environment as a top priority. As an organization, we are
seeking to reduce our environmental impact by implementing best practices across our global
facilities.
CORPORATE ENVIRONMENTAL POLICY
The Horizon Global Corporate Environmental Policy defines the expectations and requirements
for all activities that affect Horizon Global’s environmental impact. As part of this policy, Horizon
Global is dedicated to:
• Implementing and maintaining an Environmental Management System (i.e., ISO 14001)
at all facilities where appropriate to provide a framework for monitoring and evaluating
environmental performance.
• Continuously improving environmental performance through the establishment of
environmental objectives and other key metrics.
• Ensuring compliance with our commitments to customs and all environmental laws and
regulations that apply to business operations and the manufacture, distribution, and sale of
products through monitoring and auditing programs.
• Utilizing technology, behaviors, and engineering practices to reduce environmental risks
and impacts on our operations.
• Incorporating pollution prevention practices to properly control, minimize, or eliminate
regulated substances from water discharges, air emissions, and solid waste disposal.
• Reducing waste through source reduction, re-use, and cost-effective recycling programs.
• Fostering open communication with employees, through training, direction, and
encouragement, to be conscious of the potential environmental impact of their actions.
• Directing employees to act always in accordance with the policy and to implement
appropriate solutions to reduce waste and improve efficiencies.
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CO2 Emissions
2020 CO2 emission by facility are set forth below.
3000
2000
1000
0
Itaquaqucetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)
Three-year historical data is available for our primary manufacturing locations – Reynosa, Mexico
Metals, Reynosa, Mexico Electrical, Hartha, Germany, and Rheda, Germany. Our initial efforts
have focused on reducing CO2 emissions at each of these facilities. And, as part of these efforts,
CO2 emissions decreased by 11% for these facilities, while at the same time production quantity
increased. For example, at our Reynosa, Mexico Metals facility, hitch production quantity
increased by over 29% from 2018 to 2020. We will be expanding our efforts and data collection
capabilities to other facilities in the future. In particular, as part of our commitment to improving
the global ecosystem, Horizon Global strives to reduce CO2 emissions by ≥5% by 2025.
8000
6000
Tons
4000
2000
0
Reynosa Electrical Reynosa Metals Hartha Rheda
(Mexico) (Mexico) (Germany) (Germany)
2018 2019 2020
30
2018 2019 2020
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10
GWh
0
Itaquaqucetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)
The efficiency improvements made at our Reynosa, Mexico Metals facility have proven to be
successful at reducing electricity consumption. Similar implementation and continuous
improvements are to be applied to other facilities in the future.
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WATER USE
Population increase across the world has caused rising demand for water. The adverse effects of
climate change have resulted in, and will continue to cause, water stress and the desertification of
many areas, forcing industries to decrease consumption and reduce any risk of water pollution with
their wastewater. At Horizon Global, we are committed to reducing water withdrawal and
counteract the scarcity of water.
Horizon Global has begun to reduce water withdrawal and is continuously working to take
noticeable, impactful long-term steps. As noted above, aggregate production volume increased
from 2018 to 2020; at the same time, water withdrawal decreased from 96,094 m3 to 83,391 m3.
75000
50000
25000
0
2018 2019 2020
50000
40000
m3
30000
20000
10000
0
Itaquaquecetuba Reynosa Reynosa Rheda Hartha Luneray Brasov Pretoria Springs
(Brazil) Electrical Metals (Germany) (Germany) (France) (Romania) (S. Africa) (S. Africa)
(Mexico) (Mexico)
2018 2019 2020
The major sources of water for our facilities are local municipalities, with our Romania facility
obtaining water from Local Industrial Parc well water.
In addition to the above, our facilities do not dispose of any wastewater and/or byproducts into
local bodies of water. Finally, extensive financial and operational resources have been allocated to
focus on wastewater processing initiatives at one of our highest-impact facilities – Reynosa,
Mexico Metals. Full effects will be monitored and maintained as the system becomes fully
operational in the third and fourth quarters of 2021.
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COMPANY RECYCLING
As an organization, we believe recycling is a critically important action to preserve our
environment. Accordingly, we have implemented appropriate waste recycling procedures,
including for example:
1. Paper products used on-site are shredded and recycled as appropriate
2. Pallets are recycled or reused
3. All packaging materials and cardboards are recycled by third-party companies
4. Waste oils that are considered hazardous are sent to waste treatment facilities for proper
processing
5. Our Reynosa, Mexico Metals facility has initiated a water treatment activity as part of a
key manufacturing process
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SOCIAL
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OUR PEOPLE
Horizon Global’s dedicated workforce is the primary driver of the Company’s performance. Our
recent growth and positive performance are reflective of the contributions of each and every one
of our employees. We have a work environment that fosters open and honest communication,
enables all employees to make outstanding contributions, and allows everyone to develop to their
full potential in a safe, healthy, and positive environment.
The Company is steered by a strong management team with extensive industry experience, which
is deeply committed to the professional development of each employee. The Company’s success
depends upon the success of our employees and vice versa.
Recognizing Talent and Encouraging People
First and foremost – we recognize and encourage the talent within our team. We often share
globally, and on our internal website, the notable achievements, and contributions our employees
make to our organization.
We also have
an employee
Spotlight
Story each
month.
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Recognizing Long-Timers
Beth Shelp and Roberta Lyons – 37 Years of Service!
Beth Shelp started working with the Company in 1984 at a Draw-
Tite®, facility in Canton, Michigan. Beth was the Master Planning
Manager until the facility was closed in 2002. At that time, the leadership
team recognized value in her passion and experience and offered her to
relocate to the new Plymouth, Michigan headquarters and continue her
role. Now, Beth works as Production Planner Lead.
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Benefits at a Glance
Horizon Global emphasizes the importance for our employees to plan for their future and strike a
positive work-life balance. To achieve this, Horizon Global provides a flexible work environment
with market competitive compensation and benefits packages across the globe. For example, in the
Americas, we offer parental leave to all full-time employees. In the United States, this includes birth
of the employee’s child and care for the employee’s newborn child, as well as placement of a child
with the employee for adoption or foster care and to care for the newly placed child. In Mexico, in
addition to parental leave, we offer a childbirth allowance.
In the United States we offer, in addition to customary benefits, the following opportunities to
employees: Tuition Assistance, New Parent Leave, Bereavement, Health Insurance (dental, vision,
and health care plans), Short-Term and/or Long-Term Disability, Retirement Programs, Paid
Personal Time Off, and EPA – Employee Assistance Program (full-time employees).
Horizon Global takes an active role in our employee’s financial stability. We offer various financial
support opportunities to help our employees achieve their goals and plan for retirement. At present,
we have participation rates of 83.5% of employees in the USA and 100% in Canada and Mexico in
the employee retirement savings plans.
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Remote Work
As noted above, Horizon Global is encouraging and supporting all non-essential corporate
employees to work from home for the foreseeable future. For our corporate employees, remote work
arrangements provide several potential benefits to our employees, including, for example:
• greater flexibility in scheduling
• removal of commute stress
• location independence
• improved inclusivity – expanding the pool of candidates beyond a single location means the
potential for hiring diverse candidates from different socioeconomic, geographic, and
cultural backgrounds
• for working parents, improved ability to manage children and school
• money savings – decreased spending on commuting, maintenance, parking fees, lunches, etc.
• increased productivity, performance, and job satisfaction
• a happier, healthier work-life balance
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As of the date of this Report, in the United States, approximately 35% of our workforce is women,
which is above comparative averages for women in the manufacturing industry (generally around
29%). Additionally, over 22% of the Company’s Board of Directors are women (both of whom are
independent), 14% of the Company’s leadership team is women, and 23% of our global workforce
is women.
The ratio of basic salary and remuneration of women to men is shown below:
Region and Level Women:Men Region and Level Women:Men
(%) (%)
USA Director level 99.8 Germany – Rheda 94.8
Management
USA Manager level 100.7 Germany -Rheda Staff Level 101.7
USA Engineers 99.9 France Management 88
USA Professional level 104.5 France – Staff Level 96.6
USA Hourly level 101.5 Romania – Brasov 98
Mexico Manager level 84.0* UK – Deeside 106.2
Mexico Professional 92.3 South Africa 101.2
level
China 93.9
* Value is based upon Reynosa, Mexico electrical facility. * Overall variance is attributed to tenure and the pay premiums.
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COMMITMENT TO ETHICS
Ethics Hotline
Horizon Global is committed to an open and honest work
environment. We encourage our employees to speak up, and we
provide the resources to do so. We have a designated Ethics Hotline
reporting system, within our Human Resources department, where
any information given is confidential and anonymous and allows
employees to report concerns of misconduct by the Company, its
leadership, other employees, or agents.
Horizon Global tracks and reviews all claims of misconduct—whether made to the Ethics Hotline
or through some other channel. As appropriate, Horizon Global follows up with individuals who
submit concerns anonymously, while preserving the reporter's anonymity. Our leadership
investigates and remediates each and every anonymous allegation.
In 2020, we received 22 calls to our Ethics Hotline, all of which were promptly investigated and
addressed, and corrective or disciplinary action was taken where appropriate. An independent third-
party administers the Ethics Hotline and an internal cross-functional committee oversees the Ethics
Hotline process.
Freedom of Association
Horizon Global supports and respects its employees’ freedom of association in all countries and
complies with our obligation to satisfy all local labor laws and regulations. As of December 31,
2020, we employed approximately 4,000 people, of which approximately 12% were in the United
States (none of which are covered by collective bargaining agreement). None of our employees in
Europe-Africa are covered by a collective bargaining agreement. In the Americas – at both of
our Reynosa, Mexico facilities, over 80% of employees are covered by collective bargaining
agreement; at Mississauga, Canada, over 55% of our employees are covered by collective
bargaining agreement; and in Itaquaquecetuba, Sao Paulo, Brazil1, over 65% of our employees
were covered by collective bargaining agreement. Our relationships with labor unions are generally
healthy and stable business partnerships. We have worked collaboratively with our union
partners to realize increases in performance and with a constant eye towards respect for
employees and their bargaining representatives.
In addition, we work closely with our employees and labor union partners to promptly communicate
any operational changes at affected facilities.
1
The Brazilian operation was sold in the Second Quarter of 2021.
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Horizon Global tracks TCIR (Total Case Incident Rate) & DART (Days Away, Restricted or
Transferred Rate). Each of these has been steadily decreasing since 2018, even though production
has been increasing.
10
0
America Europe Africa
TCIR DART
0
TCIR DART
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CONTINUOUS IMPROVEMENT
At Horizon Global, we believe consistent and sustainable improvements are critical for the continued
success of our organization, as well for increased job satisfaction and the health and safety our
employees and customers. In 2020, we developed and implemented numerous improvements across
our facilities and businesses towards these ends.
Improvements at Facilities Using 5S Methodology
In February 2020 we began
implementation of the 5S
methodology across the
globe, a set of five
organization practices that
function cohesively to
promote workplace efficiency
and abnormality detection.
The 5S methodology focuses
on eliminating disorder to
foster a safe, clean, and
efficient work environment.
Workplace efficiency creates
greater productivity with the
use of fewer scarce resources. Evidence of these improvements can be seen in the data as we
recorded zero accidents at five of our facilities in the Americas and three of our facilities in Europe-
Africa.
To ensure all operators, engineers, and supervisors are aware of the 5S methodology and so that each
team member feels confident in exercising the 5S foundations, continuous trainings are conducted
across multiple facilities.
Two exceptional examples for 5S implementation are at our Reynosa, Mexico Metals and Brasov,
Romania facilities.
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Process Improvements
Horizon Global is committed to continuous improvement. Various recently-implemented process
improvements allow us to better utilize our capital resources, reduce waste, minimize variability,
and increase efficiency in the workplace. For example, at our Reynosa, Mexico Metals facility,
process improvements, including a Quality Lab addition, resulted in a strategic area for material
cutting, polishing, and etching and improved overall effectiveness and workplace ergonomics.
In addition, to further encourage and support safe working practices, we have additional training
programs. The Reynosa, Mexico Metals facility conducted training for new machine operation
techniques that emphasize safety precautions, driving the production of sustainable, high-quality
products.
These improvements (especially at our Reynosa, Mexico Metals facility) were evaluated for impact
by cross-functional representatives.
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COMMUNITY ENGAGEMENT
In addition to our commitment to improving the health, well-being, and success of our employees,
we are dedicated to improving lives in the communities where our employees and other stakeholders
LIVE, WORK, AND PLAY.
Helping Hand for Students and Parents – Engagement with Varsity Tutors
Due to the pandemic, many students were not able to engage with their teachers in person. We
identified this as a challenge for both our employees and their children as work and schooling
transitioned to online formats. To alleviate the stress caused by this transition, Horizon Global
partnered with Varsity Tutors, a virtual service that offers one-on-one or group tutoring services
for students who need additional educational attention. The services benefited many of our
employees’ children who are anywhere from kindergarten to college, as well as our employees who
were looking for certification coaching like PMP, CPA, and other professional certifications.
Adopt A Family
The COVID-19 pandemic has altered many lives around the globe, often impacting a family’s
financial security. As an organization, we wanted to support families in the communities nearby. We
gave our Horizon team this opportunity by partnering with Volunteers of America of Michigan
and participating in the Adopt a Family 2020 Campaign. We donated to the families in three ways:
1. Gifts from Amazon
2. A one-time monetary donation
3. Adopt one family and support them with the help of Volunteers of America of Michigan
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SUPPLY CHAIN
SUSTAINABILITY
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ETHICAL SOURCING
We strive for a sustainable and responsible supply chain by working with our business partners to
find ethical solutions to global social and ecological challenges. To meet our customers’ demands
and deliver best-in-class, innovative products, we collaborate with our supply chain partners to
promote human rights, fair labor practices, environmental progress, ethical business practices, and
anti-corruption policies.
At a high-level, our suppliers must adhere to the minimum principles below:
Per our 2020 Corporate Risk Analysis, our supply chain did not report any negative social impact
incidents.
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Anti-Corruption
At Horizon Global, we are committed to gaining business
based on our merits, including the quality of our products
and services, and we do not tolerate bribes or other corrupt
practices. We have a Global Anti-Corruption Policy
which applies to all employees, Board members, and
officers, as well as all third-party agencies or vendors.
This policy complies with the U.S. Foreign Corrupt
Practices Act and all other local and/or applicable laws.
This policy is communicated and accessible to all
employees on the internal website, is on our public
website, and a copy is provided to those with whom we
do business.
In 2020, we did not have any known incidents of
corruption at any of our facilities or within our supply
chain.
PRODUCT QUALITY & SAFETY
Delivering safe, quality products is of utmost importance to Horizon Global. Quality guides our day-
to-day actions, and we strive for continuous improvements – It’s Always Day One!
We are an industry-wide leader in safe, quality products, and we work closely with our supply chain
to achieve this.
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Standards Implementation
Many of our facilities have been certified by a third party to industry standard accreditation, such as,
ISO 14001 (Environmental), ISO 45001 (Health & Safety), ISO 50001 (Energy), ISO 9001
(Manufacturing), and IATF 16949 (Automotive specific) as well as many others. These standards
help organizations develop and implement policies and procedures necessary in meeting customer
requirements for products and services and ensuring quality and consistency. These certifications
demonstrate that we are consistent with our processes. Training to these standards – including
Quality Management System (QMS), Environmental Management System (EMS), and
Occupational Health & Safety (OH&S) – is part of the yearly revalidation requirements.
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INFORMATION SECURITY
Customer Privacy
We rely upon information technology systems and networked products in our business operations to
store, process, share, and transmit electronic information. These activities are necessary to manage
and support a variety of our business processes. Additionally, we collect and store sensitive data of
our employees, customers, and suppliers. State-of-the art, robust privacy policies and procedures are
critical to protecting our business and our stakeholders.
Identifying Risks
Our newly formed Compliance Council is focused on, and committed to, reducing cybersecurity
risks. This Council works closely with our Board of Directors – two members of which possess
Information Security expertise – to create a roadmap for best practices and mitigate risks.
A data breach of any nature is a concern to our Company and our customers. We engage in industry
best practices to protect against instances of data corruption and/or privacy violation. Horizon Global
never engages in the sale of customer information to third-party services. Further, to protect our data
from outside threats, our employees communicate using encrypted networks and access their
technology through a multi-stage login process. In addition, we are working closely with the security
research community to establish innovative best practices to combat the increasing global threat of
data breaches and ransomware attacks.
Independent third-parties (as of as of 2020, Deloitte and Ernst and Young) reviewed and validated
routine Security Operations Center Compliance; no material weaknesses were identified, and any
identified deficiencies were communicated to those charged with governance as required.
To protect Company data assets and intellectual property, Horizon Global engages in employee
information security training. IT Security Managers conduct routine training with users to highlight
core topics of relevance. As part of the training, we conduct a monthly anti-phishing campaign to
ensure our employees are prepared to act appropriately on harmful spam/phishing emails. We also
attempt to simplify our supply chain by providing employees only with data that is necessary to
perform their operations. To provide an extra layer of protection, many employees sign non-
disclosure agreements during the onboarding process. Additionally, all employees are aware that in
the event/incident of an endogenous data breach or privacy violation, the responsible party(ies) are
to face full-scale investigation by the Board of Directors and potential termination. Finally, the
Company has purchased a Cybersecurity Security insurance policy to cover both first and third-party
financial losses resulting from data breaches and other cybercrimes that may compromise sensitive
Company or customer information.
Data Integrity
No known incidents regarding a loss of data and/or Information Security breaches were identified,
in the last three years (i.e., 2018, 2019, and 2020).
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STAKEHOLDER ENGAGEMENT
Interaction with our stakeholders at different
intervals is essential to improve our business
processes, community involvement, and ESG
efforts, and, as a result, we have implemented a
variety of tools to foster this communication. Any
concerns raised by the stakeholders are discussed
during our weekly “Voice of Customer” meetings
with cross-functional team leads (including
engineers).
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GOVERNANCE
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During 2020, our Board held 10 meetings, and all of the then-current Directors attended at least
75%, in the aggregate, of the meetings of the Board and all Committees of the Board on which they
served. All Directors are expected to attend all meetings, as well as the Annual Meeting. In addition
to attending Board and Committee meetings, Directors fulfill their responsibilities by consulting
with the Chief Executive Officer and other members of management on matters that affect the
Company.
The Board has three permanent committees, including the Audit Committee, the Corporate
Governance and Nominations Committee, and the Compensation Committee.
Each of these Committees is composed entirely of independent Directors and has a written charter
defining its purpose, authority, and duties. The Committees enhance the Board’s oversight of areas
that are critical to our corporate responsibility and sustainability efforts, including: transparent and
reliable financial reporting, risk identification and mitigation, ethics and compliance, diversity,
equity, and inclusion, Board and management succession planning, shareholder proposals, supply
chain sustainability, and climate change. In particular, the Governance Committees takes lead
responsibility for overseeing ESG activities (i.e., risks, opportunities, practices, and disclosures).
Board Committees are guided by Committee Charters, available at www.horizonglobal.com
RISK MANAGEMENT
The Board has the overall responsibility for risk oversight, with a focus on the most significant risks
facing the Company. When granting authority to management, approving strategies, and receiving
management reports, the Board considers, among other things, the risks, and vulnerabilities the
Company faces. The Audit Committee considers risk issues associated with the Company’s overall
financial reporting, disclosure process, and legal compliance, as well as reviews policies on risk
control assessment and accounting risk exposure. In addition to its regularly scheduled meetings, the
Audit Committee meets with our internal auditor, Ernst & Young, in executive sessions following
each quarterly meeting, and with the General Counsel and Chief Compliance Officer as determined
from time to time by the Audit Committee. Each Audit Committee member is financially literate,
and each of Mr. Henderson and Ms. Costello qualifies as an “Audit Committee financial expert”
within the meaning of SEC regulations. Each of the Compensation Committee and the Corporate
Governance and Nominations Committee considers risk issues associated with the substantive
matters addressed by each such Committee.
The Board believes that its structure for risk oversight provides for open communication between
management and the Board and its Committees. As an organization, we investigate all the functions
or activities from a risk standpoint. We distinguish the types of risk we encounter as external and
internal risks. Understanding and planning for mitigation is also a part of our overall Corporate
Compliance program, and for that we have appointed a Compliance Council and implemented a Risk
Escalation Policy.
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